ENTREPRENEURSHIP REPORT

2011

BUSINESS PLAN
RESTAURANT FOR HEALTH CONCIOUS PEOPLE

ENTREPRENEURSHIP FINAL PROJECT REPORT

Submitted To: Sir Jawad Saboor

Submitted By: Group # 8

Group Members

Sohail Hafeez Fa09-mba157 Wahab 185 Syed 162 Nazmeen 124 MaqsoodFa09-mbaHassan RazaFa09-mbakhizer...Fa09-mba-

Yusra Tariq......... .Fa09-mba194 Sajid Rasheed.. .Fa09-mba142

Table of Contents
REPORT.......................................................................................................................1 ENTREPRENEURSHIP FINAL PROJECT REPORT.............................................................2 Submitted To:.............................................................................................................2 Submitted By:.............................................................................................................2 Table of Contents....................................................................................................... 3 Executive Summary:...................................................................................................5 Introduction................................................................................................................ 7 Business Background..................................................................................................7 Restaurant name:.......................................................................................................8 Vision:......................................................................................................................... 8 Mission........................................................................................................................ 8 Objectives:.................................................................................................................. 9 Keys to Success..........................................................................................................9 Company Summary..................................................................................................10 Company Ownership.................................................................................................10

Company Locations and Facilities.............................................................................11 MARKETING SECTION................................................................................................12 Strategies:................................................................................................................ 13 Pricing strategies:-....................................................................................................13 Restrain prices:.........................................................................................................14 Elimination prices:....................................................................................................14 Marketing strategy:-.................................................................................................14 Market scope strategy:.............................................................................................14 Market Analysis Summary:.......................................................................................15 Target market:..........................................................................................................16 Main Competitors:....................................................................................................16 FINANCE SECTION.....................................................................................................17 Startup summary......................................................................................................18 Start-up Funding.......................................................................................................18 Personnel Plan.......................................................................................................... 20 Pro Forma Profit and Loss.........................................................................................21 PAY BACK PERIOD:....................................................................................................23 CONCLUSION:...........................................................................................................24 RESTAURANT MENU .................................................................................................25 MENU............................................................................................26

Executive Summary:
DREAM COUSINE unlike a typical restaurant will provide a unique combination of excellent nutritious food according to everyone health need at value pricing with a fun and entertaining atmosphere. DREAM COUSINE is the answer to an increasing demand. The public (1) wants value for everything that it purchases, (2) is not willing to accept anything that does not meet its expectations, and (3) wants entertainment with its dining experience.

In today's highly competitive environment, it is becoming increasingly more difficult to differentiate one restaurant concept from another. DREAM COUSINES does this by being the only nutritious food provider matching the health needs and consulting a nutritionist, for one low price. This restaurant business plan is prepared to obtain financing for the initial launch of this concept. The financing is required to begin work on kitchen design, architectural plans, manuals and recipe books, site selection, equipment purchases, and to cover expenses in the first year of business. Additional financing will need to be secured for the two subsequent units anticipated in July, Year 3 and January, Year 5. Our positive cash flow will help to offset some of this burden. The financing, in addition to the capital contributions from the owners, will allow DREAM COUSINES to successfully open and maintain operations through year one. The initial capital investment will allow DREAM COUSINES to provide its customers with a value driven, entertaining dining experience. A unique, mid-scale, innovative environment is required to provide the customers with an atmosphere that will induce Rawalpindi Islamabad population to bring family and friends to dine and socialize. Successful operation through year three will provide adequate cash flow to be selfsufficient in year four.

PROJECT PROPOSAL
In this fast growing world, business has become a very dynamic field. We have to look various factors while choosing a specific field in business. Without considering the market conditions, competitors analysis, government policies and the economic and political conditions we cant lay down the foundation of a successful business. The reason is that today we are competing against all the companies of the world, local as well as international. Now the concept of war has been changed from the battlefield to the field of business and the economic growth.

Today businessmen are confronted with the problem of generating the finance for establishing the business. Usually this problem arises for the small entrepreneurs. But our report elaborates such kind of business, which does not require too much finance rather than communication skill and public relations.

We have chosen the location for our business office in the PWD Market, G.T Road Islamabad. The reasons for choosing this area are

The house in which we are going to start the business is owned by one partner Our target market is in Bahria Town Opening a restaurant in a house there is not permissible Commercial area of Bahria Town was very expensive and thus unaffordable for small entrepreneurs like us.

Introduction
Business Background
During our search for an idea to start a new business different from other businesses prevailing in the market, we were hit upon an idea that in our society food streets, hotels and restaurants usually dont care about the diet needs and nutrition of the senior citizens and those who are sick of some disease and are suggested by the doctor not to eat the spicy and salty sort of foods. Thus these people are deprived of the taste and delicious and spicy foods and have to eat tasteless foods. So we thought of an idea to open a restaurant at a small level that provides food items to the old age people and patients in accordance with their health needs bringing them back the same taste so that they can also enjoy the food which healthy and young people can.

The foods which we are going to serve include Chicken, Vegetables, Sandwiches, Fish, Vegetable renal diet, Salads & Naan.

Restaurant name:
The name of our restaurant is DREAM COUSINES

DREAM COUSINES Providing taste with health Vision:

To become leading restaurant by providing customer satisfaction by focusing on: i.
ii.

Quality Hygiene Cost control

iii.

Mission
To combine focus strategic marketing with high quality hygienic products at competitive price to ensure customer good health. Our main focus will be serving quality food at a great value. We will feature a large selection of freshly-prepared food, most in full view of our guests in near future. We will feature 100 items daily that are full of flavor and zest at an unbelievable price and also healthful for sick and old age people. Customer satisfaction is paramount. When approached by a customer with a request, our motto will be, "Yes is the answer; what is the question?" We will strive for broad

appeal. We want to be the restaurant of choice for everyone: families and singles, male or female, diet conscious as well as healthy people. Everyone will be served with the delicious food that will not give any harm to their health. We will combine menu variety, atmosphere, ambiance, and friendly staff to create a sense of "place" in order to reach our goal of over-all value in the dining/entertainment experience.

Objectives:
DREAM COUSINES objectives for the first three years of operation include: Growing one unit per year for the first three years of operation. Keeping food cost fewer than 35% of revenue. Keeping employee labor cost between 16-18% of revenue.

Keys to Success
The keys to the success of Dream Cuisines are: 1. The creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate us from the competition. 2. Execution of our primary objectives to serve nothing but the highest quality food at unbelievably low prices in a clean, fun environment. 3. Controlling costs at all times, in all areas. 4. Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible.

Company Summary

Entertaining surroundings A 3D projector will be installed in the hall on which every day a new theme will be played. Customers will feel very comfortable when they will enter in out restaurant.

Quality food -- Dream Cuisines will serve nothing but fresh meats, crisp salads, delectable side dishes and scrumptious desserts ; healthy and nutritious, all served with old-fashioned, home-style care

Variety we will provide a great deal of variety when the business will flourish but at the startup we are having small number of dishes.

Business periods we will be providing meals 2 times a day between. The timings will be from 1200pm to 1200am. There will be no breakfast provided in the beginning of the business.

Friendly employees -- Our employees will great every on entering the hall. Our managers will make table visits a priority. We will dress casually in tailored jeans and ironed logo T-shirts that our customers may purchase for a nominal price.

Festivals -- special festivals will be organized every month where the old age people will get to gather and engage in social activities.

Nutrition -- A nutritionist will also be there (after sometime) in the restaurant available on weekends who will guide our customers about their nutrition requirements and will also help us in drawing our menus.

Company Ownership
This restaurant is a partnership company in which we, the group members have brought our capital and became partners. Two partners are active partners and the rest are sleeping partners. The active partners will thus be getting 24% and the sleeping partners will be getting 13% of the net profit.

10

Company Locations and Facilities

Dream Cuisines will seat from 40-50 guests at a time in its beginning. We will equip the restaurant with a state-of-the-art sound system connected to an old-time juke box where our customers will be able to select their favorite country and western or eastern songs for free. A 3D projector will play different themes each day and the customers will enjoy a new surrounding every day. Restaurant will be built to our specifications: clean lines, open, and pleasing to the customer. The site/building selection will be chosen based upon the following list of criteria:

Community size minimum of 40,000 people within five miles. High visibility. Easy access to parking lot with a minimum of 20 parking spaces. No overabundance of competition in the trade area.

All of these qualities are consistent with Dream Cuisines goal of providing a top quality, entertaining dining experience at an unbelievably low price. We want "word of mouth" to be our best form of marketing, where our guests cannot believe the value of their dining experience and can't wait to tell their friends and neighbors. The waiters of the restaurant will be given accommodation inside the restaurant building to improve their efficiency and to motivate them.

11

MARKETING SECTION
12

Strategies:
Pricing strategies Marketing strategies Promotional strategies

Pricing strategies:In our marketing strategies we use penetration strategy to enter into the market with a low initial price. So by doing this we can capture a large market share. This strategy is used when elite marketing does not exist and demand seems to be elastic. This strategy is also used to discourage the competitor to enter into the market This strategy is used for gaining economy of scale In this strategy we will focus on restrain prices and elimination prices

13

Restrain prices:
This is applied so that prices can be maintained at a certain point during inflationary period.

Elimination prices:
Are fix at point that threaten the survival of competitor. As a penetration reflects a long term perspective in which short term profits are sacrificed in order to establish short term sustainable competitive advantage.

Marketing strategy:Market scope strategy:

This strategy deals with the coverage of marketing. It contains three major elements
A. Single

marketing strategy:-

Scared resources Achieve economies of scale Quick responses from the customer So thats why we are choosing single/niche market strategy.

14

Single/niche marketing often called a born of necessity.

B.

Market commitment strategy

Referred to the degree of involvement a company seeks in a particular market. We focus on marketing mix. Improving our food quality through advertising, sales, promotion and growth rate.

C.

Promotion strategy:-

English newspapers Magazines Brochure (hospital is a main source) Radio Personal selling Sms marketing Social networking sites

Market Analysis Summary:

DREAM COUSINES is faced with the exciting opportunity of being the first mover in the "nutritious food" concept to become a national player. The consistent popularity of nutrition and healthy food, combined with a value price point, has proven to be a winning concept in other markets and will produce the same results nationally. In looking at our market analysis, we have defined the following groups as targeted segments. We firmly believe, and have witnessed, that a much broader appeal exists for this midday time and dinning slot because we have priced it so low. Below are our targeted market segments.

15

Age -- Seniors, Baby-Boomers, young married couples with children, and blueFamily Unit -- We will appeal to young families with new babies or mature

collar workers of all ages.

families with children under the driving age. Most of our family units will have two wage earners.

Gender -- We will equally target both sexes with a slight skew for females due to Income -- We will appeal to the high side of low income individuals and to all in

their being more conscious about their health and fitness/ diet.

the middle income bracket.

Occupation -- We will target the blue-collar worker, young professionals with a

family, old age people, and sick people

Target market:
Our target customers are those people who are very conscious about the nutrition in their diet and those who are suffering from some disease and they cant go in any restaurant to eat.

Main Competitors:
Everyone that sells prepared meals is our competition because we all compete for the same home meal replacement dollar. However as we are mainly focusing on the nutritious food so our competitors would be the restaurants doing business on the same pattern which are not existing on the map till now.

16

FINANCE SECTION
17

Startup summary

Start-up Funding

START-UP FUNDING

ASSETS

RUPEES

Furniture

350,000

Restaurant Cooking range

35,000

Crockery (kitchen utensils)

1,30,000

Deep freezer

30,000

Decoration

20,000

Electric fans (x6)

12,000

18

Exhausts (x3)

5,700

Air conditioner (1.5 tons x4 )

2,50,000

Cash

2,47,300

Electricity generator (6KV)

70,000

Restaurant structure

2,50,000

Other assets

100,000

Total Assets

15,00,000

LIABILITIES AND CAPITAL

RUPEES

Liabilities

Current Borrowing

Long-term borrowing (interest free)

Accounts Payable

Total Liabilities

Capital

19

Planned Investment

Investor 1

300,000

Investor 2 Investor 3

300,000 300,000

Investor 4

300,000

Investor 5

300,000

Total Planned Investment

15,00,000

Total Capital and Liabilities

15,00,000

PERSONNEL PLAN

PERSONNEL PLAN

MONTHLY

Chef

20,000

Assistant chef

12,000

Cleaning

4,500

Waiters (x 4)

12,000

20

Security

6,000

Receptionist Cum Accountant

(Job performed by active partner)

Dish Washer

4,500

Total Payroll

59,000

Pro Forma Profit and Loss

PRO FORMA PROFIT AND LOSS

YEAR 1

SALES @450 /UNIT

RS 64,80,000

Cost of Sales @250/unit

36,00,000

Gross Margin

28,80,000

Gross Margin %

44.44%

EXPENSES

Payroll

7,08,000

Marketing Expenses

2,00,000

21

Utilities

4,56,000

Overhead (napkins, tissues, generator diesel etc)

100,000

TOTAL OPERATING EXPENSES

14,64,000

Profit

14,16,000

BREAKEVEN ANALYSIS:

BREAK-EVEN ANALYSIS

Monthly Units Break-even

415

Monthly Revenue Break-even

Rs 186,750

ASSUMPTIONS:

Average Per-Unit Revenue

Rs 450

Average Per-Unit Variable Cost

Rs 250

Estimated Monthly Fixed Cost

Rs 100,000

Fixed cost= FC= 100,000

22

Avg. per unit Variable cost= VC= 250 Avg. per unit price= P= 450 Break even quantity= BEQ= FC / (P VC) =100,000 / (450 -250) =500 units

Break even revenue =

BER = BEQ x P = 500 units x Rs 450 =Rs 225,000

PAY BACK PERIOD:

Payback period = 1 + 60000 / 1440000 = 1 + 0.042 = 1.042 years Return on Investment = 1,416,000 / 1,500,000 = 0.944 % As shown by the above calculations, the payback period of our project is 1.042 years. This means that the whole of our initial investment will be recovered in one year and few days more. This is a good sign and indicates the high inflow cash in future as expected.

23

CONCLUSION:
DREAM COUSINES unlike a typical restaurant will provide a unique combination of excellent nutritious food according to everyone health need at value pricing with a fun and entertaining atmosphere. DREAM COUSINES is the answer to an increasing demand. Our major focus is on health, hygiene and nutrition and this is also our competitive advantage. So we will do our business on these lines and will constantly strive to improve the efficiency of our business and build our brand name in the market nationwide.

24

RESTAURANT MENU

25

MENU
Chicken:Chicken rice dish

Raita:Cucumber and mint

Chicken vegetables (Chinese) chicken boiled rice

Salads
Fresh salads

Vegetables:Mix vegetable with chicken Diabetic vegetarian curry Cauliflower special Poached mix vegetables Dal plain curry

Naan:Roti Garlic naan plain naan Green tea

Sandwiches:diet:Fresh chicken sandwiches Vegetables sandwiches (Cucumber sandwich) cauliflower sandwiches

Vegetable renal
Beans

Fish:Fish stakes Poach fish stakes

26